Fox Group Withdraws From Disney Venture

News Corp.’s Fox Entertainment Group said it is pulling out of its planned movies-on-demand joint venture, Movies.com, with Walt Disney Co. after deciding the venture was not “appropriate” for the moment.

Fox said that “after considering the potential regulatory process and logistical issues and carefully examining technological and marketplace developments, it had determined that the joint venture was not an appropriate initiative at this time.”

Disney did not say whether it planned to go forward with development of the service, which was intended to provide movies and other entertainment to U.S. consumers via the Internet and cable television lines.

The two firms said they have “chosen to pursue alternative strategies to distribute their films to the growing broadband audience.”

Disney said it will continue to own and operate the existing Movies.com Web site, a movie information service offering movie reviews, trailers, listings and other content for movie fans.